Gold and Bitcoin face volatility amid US-China tensions and geopolitical risks

Gold and Bitcoin are experiencing significant market volatility driven by geopolitical tensions and shifting economic indicators. Gold prices have faced downward pressure, testing the US$4,000 per ounce level, despite a 25% decline since the onset of the US-Israeli conflict with Iran. However, Chinese households have increased their appetite for bullion, utilizing accumulation plans to seek safe havens amid a slump in Chinese property markets and equities.

In the cryptocurrency market, Bitcoin has struggled, recently breaking below the key US$80,000 support level. Analysts note a bearish short-term outlook, with potential downside targets near US$75,000 if selling pressure persists. The market remains sensitive to potential US military operations in the Middle East and upcoming Federal Reserve decisions regarding interest rates.

Simultaneously, US-China financial friction has resurfaced. US Treasury officials have raised concerns regarding Chinese market access for major US firms, including Citigroup and Mastercard. These diplomatic tensions, combined with ongoing instability in the Strait of Hormuz, continue to influence global commodity flows and investor sentiment toward safe-haven assets.